I mentioned in an earlier post about Cable, EUR/USD and the AUD/USD being dominated by downward sloping channels and thought i should attach some charts of said currencies to better highlight the situation.
First up we have the AUD/USD daily chart that i have included. The pop towards 0.6550 this morning briefly breached the topside of the channel but we have failed to sustain this move and i would not be surprised to see a retest of that important 0.6280 level which is becoming something of a line in the sand for the AUD/USD, so its a case of leaving orders and getting set in a 0.6300/0.6500 range with stops left appropriately.
Next up we have the EUR/USD daily chart. It has a little more room on the topside and can easily pop back to the 1.2900 region but unless we can make it back above 1.3000 i am afraid it looks like we retest 1.2300 and from there…it just gets worse and worse.
And good old Cable needs to take out 1.4500 in order to make me think we will not be taking a trip south to visit 1.3650.
Please remember that we have BOE and ECB interest rate decisions out tonight, and if my prediction of a hold in the UK and a cut in Euroland is correct it should see EUR/GBP back down towards 0.8800.
